1. Rehabilitation of Degraded Forestlands in Ethiopia Ethiopia – Ministry of Environment and Forest Submitted by: African Regional Workshop on Nationally Appropriate Mitigation Actions Kigali, Rwanda August,2015

2. INTRODUCTION  Deforestation and forest degradation have long history in Ethiopia.  Projections also indicate that unless action is taken to change the traditional development path, an area of 9 million ha might be deforested between 2010 and 2030 (CRGE, 2011).  This trend must be reversed to increase the contributions of forest sector in the national economy as well as to improve ecosystem and ecosystem services. For this, the national NAMA identified about 21,444,000 ha of degraded land to be rehabilitated through afforestation/reforestation and related activities.  Hence, this proposed project will use an integrated approache to rehabiliate 1 million ha of such degraded lands while contributing to the nation’s GHG emission reduction and livelihhood improvement ambitions.

3. Project Goal & Objectives The overaching project goal is to restore degraded forestland through the implentation of improved technologies that ensure sustainable social, economic and enviromnmetal co-benefits while contributing to the fulfilment of the nation’s “zero net emission economy“ committement by 2025. Over the project life-span, 5.5Mt CO2e will be sequestered directly by afforestating/reforestating 1 million ha of degraded lands. Moroever, dissimination of improved /fuel efficient stove will help to reduce emission from deforestation by 1.2Mt CO2e over 5 years and thereby contribute to the national and global efforts to curb GHG emission.

4. TIME FRAME & TOTAL COSTS OF THE PROJECT Project implementation start [01/2016] Project implementation termination [12/2020] Year Amount (EUR) NAMA Support Project volume-Investment plan 20164,548,722 20171,879,706 20181,815,097 20191,074,675 20201,000,000 2021 - Total10,318,200

5.  A number of national climate policy are behind the initiation of the proposed NAMA support project.  CRGE facility uses existing institutiona arrengements to implement the programmes & projects  Ethiopia, which contributes less than 0.3% the global CO2 emissions per year, understood its role in fighting climate change and took a constructive role in the on-going climate negotiations. The Ethiopia’s CRGE strategy is, for instance, one of those national climate stratagies for addressing both climate change adaptation and mitigation objectives.  It aims at reducing GHG emission from its economic development sectors (Agriculture, forestry, power, transport, building, industry). Under the business-as-usual (BAU) development pathway, the projected emission level by 2030 will reach to 400 Mt CO2e from 150 Mt CO2e in 2010 (base year).  Ìt is already mainstremed CRGE into GTP2 of every sectoral plna so that to achive the National target. National Policy context:

6. Financial cooperation Agency MEF-Forest Sector (NAMA Responsible Directorate) Technical Cooperation Agency Other MEF Directorates Regional/District/local institutions Joint Steering Committee NAMA Facility Cooperation structure & Institutional arrangement

7. MOFED CRGE Facility Federal Implementing Entity Bureau of Finance and Economic Development (BOFED) Specialized Financial Intermediary Non State Actor Executing Entity Regional Implementing Entity Non State Actor Executing Entity WOFEDs The CRGE Facility Fund Flow Arrangement in Ethopia

8. It is more likely to sustain after the NAMA facility intervention because... It considered the most important adaptation and mitigation needs and constraints of the country, It built high sense of ownerships among the local communities as they are the integral part of the project design and implementation, It aligned with the long-term vision of the national NAPA, NAMA, CRGE, GTP and other reverent plan/strategy,  It has a rigorous plan for reviewing, assessing and, if necessary taking appropriate improvements on the proposed interventions (e.g. by means of regular monitoring and evaluation assessments),  It considered the socio-economic and environmental needs of the climate vulnerable local communities,  It analyzed the potential beneficiaries and future attractiveness of NAMA project investments in relation to the long-term international climate negotiations and carbon market trends,  It engaged local institutions and organizations that have shared community and development vision,  In addition to the above points, the legal and regulatory framework of MEF and its ample experiences in managing mega projects including the implementation of the Ethiopian CRGE strategy are among the key technical, financial and administrative factors that ensure sustainability of program after NAMA intervention.

9. The GHG mitigation potentials of This NAMA support project might be constrained by a number of barriers including: Financial barrier: the availability of sufficient finance from public, private and multilateral climate finance sources, transaction cost and high cost of technologies could limit the GHG mitigation potential of the forest despite the unwavering committments of the Ethiopia government to implement low- carbon development initatives; Technological barriers: Lack of improved technology (e.g., suitable planting materials and improved stoves) and poor technology replication potential within the target groups might affect the amount of GHG captured/reduced by forest sector; Institutional barrier: limited human and institutional capacity at various levels could limit the implementation of forestry projects and thereby affect the GHG mitigation potential;

10. Market barrier: resource pricing, wanning demand for carbon market by the international community, limited vaue chain and market access for forest products could dent the potential of forest sector to curb GHG emission; Private sector involvement barrier: The weak linkage between forestry institutions and the private sector might limit private involvement in forestry activities; encroachment and illegal settlement within the forestry project areas negatively impacted the GHG potential of forestry project; Competing landuses barrier: unnecessary competition between forestry and other landuses aggravates natural resource degradation, making forestry intervensions challenging. However, the proposed NAMA support project will provide means to overcome most of the above stated barriers

11. The successes of this project might be constrained by risk factors: inadequate capacity at local, regional and national level(medium) lack of improved technologies (low), lack of interest by donors on climate adaptation and mitigation initiatives (low-to-medium), insufficient resources availability (low-to-medium), fluctuation in inputs price (medium-to-high), lack of awareness on the importance of NAMA initiatives (low), poor participation by local community (low), increased severity and frequency of extreme events (medium-high), lack of political will for the program and/or political instability in the country (low),

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